self HSA contribution and NIIT
I am self contributing to HSA (not through employer). I will be subject to NIIT due to high income and divident income. How can I exclude HSA from being applied toward NIIT if I am self contributing HSA. I understand that if I would have contributed to HSA through employer it would have not counted toward my income for the NIIT purposes.
Permalink Submitted by Alan - IRA critic on Wed, 2024-10-16 21:33
Your deductible HSA contribution is an adjustment to income on Sch 1 of Form 1040. Therefore, the HSA contribution will reduce your modified AGI for purposes of determining NIIT, leaving your MAGI the same as if the employer deducted the contribution.